Expert Committee to remove loans of Waiver of Agriculture Crop Loans to farmers, Women Self Help Groups in AP - Adoptoin of the Recommendations

Waiver of Agriculture Crop Loans to farmers, Women Self Help Groups; of the State of Andhra Pradesh -Appointment of Expert Committee -Submission of the Committee’s Report
Adoption of the recommendations by the Council of Ministers –Orders issued.

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FINANCE (IF) DEPARTMENT
G.O.Ms.No.164 Dated: 02.08.2014.
Read:-
G.O.Ms.No.31, dt.10.06.2014 issued by Agriculture & Coop (Agri.ii) Department.
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ORDER:
Andhra Pradesh State experienced a series of calamities in the past 5 years. 2009-10 experienced severe drought followed by heavy rains causing extensive damage to crops.
Unseasonal rains and two cyclones hit the State in 2010-11. There was severe drought in the year 2011-12 while 2012-13 & 2013-14 experienced drought as well as unseasonal rains/
cyclones causing undue hardship to the farming community. Recurrence of calamities year after year has resulted in severe distress among the farmers and a number of farmers have committed suicide.

2. Women Self Help Groups, which mostly operate in the rural areas and whose members largely depend on agriculture, have also suffered due to the calamities narrated
above. This has resulted in the erosion of funds and activity of the women groups got drastically reduced. This situation has ultimately lead to default in the repayment of dues to
the banks, which provided financial assistance to the farmers and women groups.
3. The State Government of Andhra Pradesh therefore, constituted an Expert Committee under the Chairmanship of Sri. P. Kotaiah, former Chairman, NABARD; vide the cited GO, to examine in detail the implications and to suggest the modalities and methodology of implementing a “Debt Weaver” Scheme to the above category of borrowers. The Expert Committee submitted their report to Hon’ble Chief Minister which was placed before the Council Ministers on 21.07.2014.

4. The Council of Ministers deliberated on the Report submitted by the Expert Committee and resolved, keeping in view the severe distress the farming community has been
undergoing in the last few years, to waive the agricultural crop loans and gold loans availed for agricultural purpose, together not exceeding Rs.1.50 lakhs per family.

5. The council of Ministers also resolved to infuse fresh capital not exceeding Rs.1.00 lakh per DWCRA Group in order to financially strengthen the groups.

6. Operational guidelines to implement the Debt-waiver scheme will be communicated separately.

7. This G.O., is available in Andhra Pradesh Government Website http://goir.ap.gov.in/
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)L.PREMCHANDRA REDDY Secretary to Government (B&IF)
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Waiver of agriculture crop loans to farmers, Women Self Help Groups etc., of the State of Andhra Pradesh – Constitution of an Expert Committee – Orders – Issued.

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O R D E R:-

The State Government of Andhra Pradesh desires to waive the agricultural crop loans given to the farmers, women Self Help Groups and handloom and power-loom weavers. To examine in detail the implications and to suggest the modalities and methodology of implementation of this Scheme, it is decided to constitute an Expert Committee.

2. The Composition of Expert Committee:-

1. Sri. P. Kotaiah, former Chairman, NABARD Chairman

2. Sri.C.S.Rao, IAS(Retd.) Member

3. Sri.AL Nageswara Rao, General Manager (Retd.) Andhra Bank Member

4. Sri.C.Kutumba Rao, Financial Analyst  Member

5. Special Chief Secretary, Planning Member

6. Principal Finance Secretary Member

7. Principal Secretary, Rural Development Member

8. Principal Secretary, Agriculture Member

9. Secretary, I.F. Convenor

3. The terms of reference for the Expert Committee on loan waiver scheme are,

1. To formulate an appropriate proposal to implement the crop loan waiver and waiver of loans to women’s Self Help Groups (SHG).

2. To examine and quantify gold loans taken for cropping purpose by women.

3. To work out the methodology to implement the proposed scheme with adequate checks and balances to ensure that the benefit goes to all the deserving farmers and SHG groups.

4. To suggest ways and means to ensure that the resource outflow from Government augments agricultural activity in the State and ameliorates the condition of financially distressed farmers.

5. To explore and recommend ways and means to raise the required resources for implementation of the above proposal.

6. To recommend a systemic framework for effective implementation of the proposed scheme transparently with built in accountability.

7. To study the interest subvention scheme by Government of India and explore the possibility of utilizing the scheme benefits optimally for the proposed scheme.

8. To interact whenever necessary with any State Government Department, Banks, Reserve Bank of India, Government of India etc on behalf of the State Government.

9. To examine and suggest recommendations for issues incidental thereto.

4. The Expert Committee shall give its interim recommendations within two weeks from the date of its constitution, to facilitate kharif loan disbursal as per

schedule. The final report of the Committee shall be furnished in 45 days.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

I.Y.R. KRISHNA RAO CHIEF SECRETARY TO GOVERMENT.